Hello dear participant !

Welcome once again to our training workshop on drawing up and updating commitment plans.

Having grasped the concept of the cash position plan in the previous sequence, in this this sequence 8, we will look at the correlation between the commitment plan (CP) and the cash position plan (CPP).

The Commitment Plan is a monthly planning document for the consumption of the year’s budget appropriations, i.e. expenditure. The Cash Position Plan is a forward-looking management tool at national level, the purpose of which is to draw up detailed month-by-month forecasts of revenue and expenditure.

Since the Cash Position Plan presents forecasts at national level, it is the Consolidated Commitment Plan that is the counterpart of the Cash Position Plan at State Budget level.

In fact, the Commitment Plan, and specifically the Consolidated Commitment Plan, feeds the “Expenditure” component of the Cash Position Plan, by providing all the expenditure to be paid monthly by the State Treasury.

The two instruments are drawn up as part of an iterative dialogue between the two administrations responsible for producing them, i.e. the Directorate General of Treasury, Financial and Monetary Cooperation (DGTCFM) and the Directorate General of Treasury (DGB), with a view to ensuring their consistency.

The body responsible for ensuring this correlation between the CP and the CPP is the Treasury and the Budgetary Regulation Committee, reorganized by Order no. 015/PM of February 28, 2024. Section 2 of this decree stipulates that: “The Committee is in charge of the implementation of the State’s Treasury management and budgetary regulation policy. As such, it is notably in charge of: – ensuring consistency between the consolidated commitment plan, linked to the consolidated procurement plan, and the cash-position plan, as well as examining, validating and monitoring infra-annual and annual commitment and cash position plans (…)’’.

Specifically, the Committee has two sub-committees, one in charge of budgetary regulation (SCRB) and the other in charge of cash position management (SCGT).

One of the tasks of the SCRB, chaired by the DGB, is to ensure consistency between the consolidated commitment plan and the cash position plan at the meeting of the Treasury and Budgetary Regulation Committee.

Conversely, the SCGT is responsible for proposing cash position projections for the year and updating the cash position plan on an infra-annual basis, based on the adjusted forecast profiles of revenue mobilization plans and commitment plans. 

Consistency between the CCP and the CPP is ensured by the Committee at the time of the quarterly update of the monthly rolling CCP. It must be based on the following guiding principles:

• – Take into account the budget appropriation ceilings set by the Finance Law and/or quarterly releases for expenditure subject to budgetary regulation;
• – Take into account outstanding commitments from the previous year and any plans for clearing arrears, not forgetting cash expenses arising from transactions with Treasury correspondents;
• – In coordination with the DGTCFM, compare the CCP with the forecast cash position plan, and anticipate any necessary changes 

From this sequence, you should remember that to avoid generating unpaid bills, the Consolidated Commitment Plan, which brings together the State’s expenditure forecasts, is constantly confronted with the Cash Position Plan, which contains the revenue forecasts. This monitoring, which begins during the preparation of the Finance Law, continues throughout the year as part of the updating of the commitment plans.